Ethereum (ETH) climbs over $2.1K despite $580M withdrawals – drop ahead?

Key Takeaways:

• ETH price pumps to over $2.1K
• The chart shows declining trading volumes and RSI divergence.
• On-chain metrics show over $580 million in withdrawals.

YEREVAN (CoinChapter.com) – Ethereum token Ether (ETH) value surged 13% in the previous 48 hours and climbed above $2,100 in the European session on April 14.

Despite the price appreciation, the chart above showed a decline in trading volumes since mid-March, which could be an indicator of a looming decline in value.

Additionally, the relative strength index (RSI) diverged from the price action’s higher highs year-to-date by printing lower highs. The described deviation backs the bearish prognosis, forecasting a price depreciation.

ETH price faces other bearish factors

Additionally, the withdrawal rate after the Shanghai fork reached nearly 240,000 ETH, or over $500 million, according to on-chain data tracker LookonChain. ETH 2.0 largest liquid staking protocol, Lido Finance address, was responsible for nearly 64% of withdrawals at over 152,000 ETH.

Analytical platform Metrika echoed the results, claiming an even higher withdrawal rate at 290,000ETH, summing up to around $580 million.

The number of validators on the chain has also declined from roughly 545,500 to 543,700 in the previous 24 hours, while the total locked ETH stood at over 19 million at 13:00 GMT. Furthermore, the validator count dropped sharply once the Shanghai upgrade went live at epoch 194048 on April 12.

Though the staked ETH withdrawal has not dropped the token’s value, it might be possible that stakers start booking profits once the ETH price moves upward. The sudden inflow of ETH tokens in the market could pull down Ether prices.

Also read: ETH Price Knocking At $2K As Staking Withdrawals Go Live On Ethereum.

Will the selloff continue?

According to the analytical platform CryptoQuant, the ETH 2.0 staking rate was still on the rise on April 13.

Moreover, ETH Selling Pressure Analysis conducted by the platform concluded that the pressure to withdraw the staked ETH would be low after the Shanghai upgrade. CryptoQuant derived the results from a profit & loss analysis of the ETH staked.

The research noted that selloff pressure emerges when market participants sit on extreme profits, which is not the case now.

We argue this mostly because: a) the majority of the ETH staked (52% or 9.4 million) is currently in loss (comparing the current ETH price to the price at the moment each ETH was staked) and b) the average depositor of the largest staking pools is also at a loss currently.

read the analysis.

According to April 4 statistics, over 9,4 million staked ETH were lost against 8,5 million tokens in profit.

Also read: Ethereum Price Drops Below $1.9K on Shanghai Fork Day — Will ETH Selloff Persist?